First Republic Bank executives sold stock in months leading up to turmoil: Report

SBefore the bank’s troubles, many of the First Republic Bank executives reportedly sold millions of dollars of stock.

According to a report by the The, bank executives who sold stock in this year included the chief risk officer and chief credit officer. Wall Street Journal.

$30 BILLION RESCUE OF FIRST RESUBLIC BANK ANNOUNCED b MAJOR BANKS

According to the report, Executive Chairman James Herbert sold shares worth $4.5 million since 2023. First Republic Bank’s chief financial officer, president of private wealth and chief executive sold stock worth $7 million. The stock sale by the bank’s chief risk manager came days after Silicon Valley Bank collapsed and caused market instability.

Bank of America, Citigroup and JPMorgan Chase announced Thursday afternoon that First Republic Bank was being saved by $30 billion as part of market stabilization efforts.

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On Sunday, the bank based in San Francisco tried to calm fears by announcing that it had “diversified its financial position through access to additional liquidity from the Federal Reserve Bank and JPMorgan Chase & Co.” It also stated that it had $70 Billion in untapped liquidity. The bank’s weekend announcement came just days after Silicon Valley Bank failed and Signature Bank was shut down by regulators.

After the collapse of Silicon Valley Bank, panic has set in at financial institutions worldwide including First Republic Bank of Switzerland and Credit Suisse. Credit Suisse received $53.7 billion capital increase from Swiss National Bank Thursday, following concerns about its liquidity.